Yes, this is correct.
What is not correct is that it goes into effect on May 1st. It’s ALREADY in effect as it is for loans sold to Fannie on or after May 1st (usually sold a few weeks after closing)
Does it make sense? NOPE! Our lovely government is essentially subsidizing the costs of people with poor credit to people with good credit. Do we expect anything else, also NOPE! 
The punishment of those who are responsible with their finances while we give a pass to those who are not is par for the course. Participation trophies all around! 
We soon will live in a society where there is no benefit to be a responsible human.
English